Clean Harbors sits at $257 per share with a 35.6x P/E ratio, triple the typical industrial stock. The market is pricing in something beyond the modest 1.3% quarterly revenue growth we saw in Q3 2025. The answer lies in regulatory tailwinds, capital-intensive infrastructure, and strategic positioning that's quietly expanding the company's competitive moat. The PFAS Catalyst Clean Harbors just locked in a $110 million contract for PFAS water filtration at Joint Base Pearl Harbor- Hickam. This isn't just anoth ...

PresentationLawrence SolowCJS Securities, Inc. Good morning, and welcome to the CJS 26th Annual New Ideas for the New Year Conference. I'm Larry Solow, a research analyst and partner here at CJS, and I'm joined by the management of Clean Harbors. To briefly remind everyone of the format for our conference fireside presentation since we're still early in the day. We're going to start with a 10-minute -- 10, 15 minutes or so overview from the company. After that, we'll open the floor for Q&A, which I will be ...

Clean Harbors (NYSE:CLH) FY Conference January 14, 2026 08:45 AM ET Company ParticipantsEric Dugas - EVP and CFOJim Buckley - SVP of Investor RelationsConference Call ParticipantsLarry Solow - Research AnalystLarry SolowGood morning and welcome to the CJS 26th Annual "New Ideas for the New Year" Conference. I'm Larry Solow, a research analyst and partner here at CJS, and I'm joined by the management of Clean Harbors. To briefly remind everyone of the format for our conference fireside presentations until ea ...

Company Overview - Clean Harbors is participating in the 28th Annual Needham Growth Conference, indicating its engagement with investors and the market [1] - The presentation features Co-CEO Mike Battles and SVP of Investor Relations Jim Buckley, highlighting the company's leadership presence [1] Industry Context - The Needham Growth Conference serves as a platform for companies in the industrial technology space, suggesting a focus on growth and innovation within this sector [2]

Clean Harbors Conference Call Summary Company Overview - **Company**: Clean Harbors - **Event**: 28th Annual Needham Growth Conference - **Presenters**: Co-CEO Mike Battles, SVP Jim Buckley Key Points Industry and Business Segments - Clean Harbors operates primarily in the environmental services and oil business sectors, with total revenue exceeding $6 billion in 2025, of which approximately $1 billion is from the oil business and $5 billion from environmental services [3][8]. Oil Business Performance - The oil business has seen a significant decline from $300 million to approximately $140 million due to falling oil prices and market challenges [4]. - The company shifted focus to collecting high-value used motor oil (UMO) instead of volume, leading to improved profitability despite lower collection volumes [5][6]. - The goal for 2026 is to stabilize the oil business and make it less volatile [6]. Environmental Services Business - The environmental services segment is performing well, with a 12% revenue growth in Q3 and 7% growth over the first nine months of 2025, driven by price increases and volume [9]. - The technical services (TS) business, which includes PFAS remediation, is expected to continue its growth trajectory, with pricing discipline being a key factor [10][25]. - The Safety-Kleen branch, focusing on small quantity hazardous waste, has also shown consistent growth of 7% over the past several years [11]. Industrial Services Challenges - The industrial services segment, valued at approximately $1.3 billion, has faced challenges with negative revenue growth of 5% due to delayed turnarounds in large plants [12][13]. - Leadership changes are anticipated to improve performance in this segment, with hopes of stabilizing revenue in 2026 [14]. PFAS Remediation - PFAS-related services are projected to grow at 20% annually, with Clean Harbors positioned as a leader in high-temperature incineration for PFAS disposal [27][30]. - Recent engagements with regulatory bodies and successful projects, such as the one in Hawaii, are expected to enhance growth in this area [36][37]. Pricing Strategy - Clean Harbors maintains a disciplined pricing strategy, with annual contract renewals allowing for price adjustments based on inflation and market conditions [55][57]. - The company has successfully navigated price negotiations, achieving mid-single-digit price increases [57]. M&A and Growth Strategy - Clean Harbors has a strong cash position with $1 billion available and plans for share buybacks, indicating a focus on shareholder value rather than aggressive M&A [58]. - The company is exploring smaller acquisitions in the environmental services space, particularly targeting privately owned businesses [62][63]. Internal Investments - Significant investments are being made in infrastructure, including the Kimball incinerator, which is expected to generate $20-$30 million in EBITDA in 2026 [40][41]. - The company is also developing mega hubs to enhance operational efficiency and margin improvement [71][73]. Future Outlook - Clean Harbors is optimistic about stabilizing its industrial services segment and continuing growth in environmental services and PFAS remediation [14][27]. - The company aims to leverage its strong market position and operational efficiencies to drive future profitability [25][66]. Additional Insights - The leadership emphasizes the importance of maintaining high margins and operational efficiency across all business segments [26][72]. - The company is cautious about the timing of potential captive incinerator closures, recognizing the long-term commitment involved [48][50]. This summary encapsulates the key insights and strategic directions discussed during the Clean Harbors conference call, highlighting both challenges and growth opportunities within the company and its industry.

Core Insights - The global medical waste management market is projected to grow from US$9.2 billion in 2023 to US$12.2 billion by 2028, reflecting a CAGR of 5.9% [1] - The increase in healthcare activities, stricter compliance mandates, and sustainability priorities are driving demand for advanced medical waste management solutions [1][2] Market Overview - The market is experiencing growth due to a sharp increase in healthcare waste volumes generated by hospitals, diagnostic laboratories, and other healthcare facilities [2] - The rising global demand for healthcare services, driven by chronic diseases and medical tourism, is increasing the need for reliable waste management solutions [2] Market Dynamics - **Drivers**: The rapid expansion of healthcare infrastructure globally is increasing waste generation, thereby driving demand for efficient waste management services [4] - **Restraints**: High capital investment requirements for advanced treatment technologies and compliant infrastructure can slow adoption, particularly for smaller providers [5] - **Opportunities**: Growing awareness programs in developed economies are improving compliance and reducing mishandling risks [6] - **Challenges**: Limited awareness and infrastructure in developing countries hinder the adoption of modern waste management practices [7] Service and Waste Type Insights - Collection, transportation, and storage services accounted for the largest market share in 2022, reflecting improved perceptions of waste management's role in healthcare [8] - Non-hazardous waste represented the largest market share in 2022, driven by an increase in healthcare procedures and revised regulations [8] - Hospitals and diagnostic laboratories are the largest and fastest-growing segments in the market [9] Regional Outlook - North America is the largest regional market for medical waste management, supported by advanced healthcare infrastructure and stringent regulations [10] - The Asia Pacific region is projected to register the highest growth rate, driven by improving healthcare facilities and increased medical tourism [10] Competitive Landscape - The market is led by established players such as Veolia Environnement S.A., Clean Harbors, Inc., and Stericycle Inc., which have extensive service portfolios and strong distribution networks [11][12] - Veolia's acquisition of Suez Environnement's hazardous waste assets in 2022 expanded its service portfolio [12] Recent Developments - Medical waste management is increasingly viewed as a strategic lever for regulatory compliance, cost optimization, and sustainability leadership [13] - Organizations investing in advanced waste management solutions are better positioned for long-term growth and brand protection [13]

Core Insights - The company has achieved approximately 500 basis points of margin improvement over the last 5 years and about 800 basis points over the last 8 years, indicating strong financial performance [1] Group 1 - The company has a diverse range of assets that allow it to manage various types of waste streams effectively [1] - There has been an increase in volumes processed through the company's network, attributed to strategic initiatives [1]

Clean Harbors (NYSE:CLH) 2025 Conference Summary Industry Overview - **Company**: Clean Harbors - **Industry**: Environmental Services Key Points and Arguments Margin Expansion - Clean Harbors has expanded margins by approximately 480 basis points since 2019 and about 800 basis points over the last eight years, driven by: - Increased volumes from strategic partnerships, such as with 3M, and growth in underlying verticals [6][7] - Focus on pricing during high inflation periods while maintaining service quality [7] - Environmental services margins are projected to finish the year just over 26%, with a long-term goal of reaching 30% and above [8] Volume and Pricing Drivers - Major drivers for margin improvement include: - Continued volume growth and pricing strategies [10] - Tailwinds from reshoring, infrastructure build-out, and PFAS opportunities [10][11] Incineration Business - The new Kimball Incinerator is expected to generate $10 million in EBITDA this year, with a target of $40 million run rate by 2027 [12][14] - The facility has exceeded throughput goals, with expectations of $25 million to $30 million EBITDA in 2026 [14] - The incineration market remains strong, with high utilization rates expected to continue [18] Captive Incinerator Opportunities - There are currently 41 active captive incinerators, with a trend of companies moving waste to commercial incinerators like Clean Harbors [19][21] - Clean Harbors aims to attract more waste from these captive facilities, similar to the arrangement with 3M [23] Industrial Services Segment - The industrial services business is valued at approximately $1.3 billion, with 50% of revenue from day-to-day maintenance and 20% from turnaround services [28][30] - Turnaround work has slowed due to deferred shutdowns, but improvements are expected in 2026 [31][32] PFAS Opportunity - PFAS revenues are currently around $100 million, growing at 20% [38] - The company is expanding its PFAS solutions, including water treatment and disposal, with significant contracts like the one at Pearl Harbor expected to generate $110 million over three years [41][42] - Regulatory developments are anticipated to create further opportunities in PFAS destruction [45] M&A and Capital Allocation - Clean Harbors has allocated nearly $2 billion toward M&A over the past five years, focusing on synergies and operational efficiencies [50][51] - The company is currently prioritizing high-return organic investments and share buybacks due to higher valuations in the M&A space [53][55] - Plans for $500 million in internal investments include enhancing throughput and developing regional hubs [56][57] Safety-Kleen Segment - The Safety-Kleen segment has shown consistent growth, with a business model that supports all Clean Harbors facilities [60][62] - The segment has been resilient despite market pressures, with a focus on subscription-based services and efficient route management [62][63] Additional Important Insights - Clean Harbors is well-positioned to leverage its capabilities in the growing PFAS market and capitalize on regulatory changes [49][50] - The company maintains a competitive edge through continuous improvement and high service levels, despite increasing competition in the environmental services sector [59]

Core Thesis - Clean Harbors, Inc. (CLH) is positioned as a leading provider in hazardous waste disposal, with a strong growth outlook driven by regulatory needs and industrial demand [1][6] Company Overview - CLH operates the largest network of incinerators in North America, supported by a robust logistics system with over 20,000 vehicles and 5,000 drivers [2] - The company specializes in complex waste streams from various sectors, including semiconductor manufacturing and emergency response [2] Business Segments - The Safety-Kleen Sustainability Solutions (SKSS) segment focuses on used-oil recycling, which is more sensitive to global oil prices and has lower margins compared to core environmental services [3] - CLH's competitive advantage lies in its extensive network of incinerators and regulatory expertise, particularly in PFAS destruction, which is a growing market contributing $100–125 million in revenue with a 20% annual growth rate [3] Market Position and Competition - CLH competes with major firms like Veolia, Waste Management, and Republic Services but offers a more comprehensive service for industrial clients [4] - While organic growth has historically been low to mid-single digits, factors like PFAS demand and reshoring may provide additional growth opportunities [4] Financial Metrics - As of November 28th, CLH's share price was $227.56, with trailing and forward P/E ratios of 31.61 and 28.82 respectively [1] - The company has a run-rate free cash flow of approximately $400 million against an enterprise value of around $13.5 billion, indicating modest returns without further expansion or higher oil prices [4] Investment Considerations - The stock is viewed as fundamentally strong but may be overvalued, suggesting a cautious approach to investment until more attractive valuations emerge [5]

Company Overview - Clean Harbors, Inc. (CLH) is the leading provider of hazardous and environmentally sensitive waste disposal in North America, operating the continent's largest network of incinerators and offering extensive emergency response, industrial services, and logistics capabilities [2] - The company has a vertically integrated model supported by 5,000 drivers and over 20,000 vehicles, enabling it to manage complex waste streams from various sectors including semiconductor fabs and hospitals [2] Business Segments - CLH dominates used-oil recycling through its Safety-Kleen Sustainability Solutions (SKSS) segment, which collects, re-refines, and resells oil, although this segment is more sensitive to global oil prices and has lower margins compared to the core environmental services segment [3] - The company's competitive advantage is bolstered by a national network of incinerators, landfills, and TSDF facilities, which face significant permitting barriers, along with deep regulatory expertise in PFAS destruction, a growing multibillion-dollar remediation market contributing $100–125 million in revenue and growing at 20% annually [3] Competitive Landscape - CLH competes with major players such as Veolia, Waste Management, and Republic Services, but remains the most comprehensive one-stop shop for industrial customers [4] - While organic growth has historically been low to mid-single digits, increased demand for PFAS remediation and reshoring trends could provide additional growth opportunities [4] Financial Metrics - As of November 28th, CLH's share price was $227.56, with trailing and forward P/E ratios of 31.61 and 28.82 respectively [1] - The company has a run-rate free cash flow near $400 million against an enterprise value of approximately $13.5 billion, indicating modest returns without assuming continued acquisition-driven expansion or higher oil prices [4] Market Outlook - The stock appears fundamentally strong but is priced for optimism, suggesting that it may be prudent to wait for more attractive valuations before considering an investment [5] - The bullish thesis on CLH emphasizes its industrial and regulatory-driven growth profile, similar to the perspective on Waste Management, Inc. [6]